Macroeconomics: Principles, Problems, & Policies
20th Edition
ISBN: 9780077660772
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 3.A, Problem 3ARQ
To determine
Price ceiling .
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________When there is a shortage of citrus fruit, the economic forces of supply and demand would suggest that a. price will stay constant. b. price will decrease. c. price will increase. d. price, all things remaining equal, will increase. e. it will take a long time before the shortage is felt in the market.
A price fixed below the equilibrium price of a product will cause a shortage of that product.
A.True
B.False
What is the term used to describe the situation where the price of a good or service increases as its quantity demanded exceeds its quantity supplied? a) Equilibrium
b) Surplus
c) Shortage
d) Elasticity
Chapter 3 Solutions
Macroeconomics: Principles, Problems, & Policies
Ch. 3.A - Prob. 1ADQCh. 3.A - Prob. 2ADQCh. 3.A - Prob. 3ADQCh. 3.A - Prob. 4ADQCh. 3.A - Prob. 5ADQCh. 3.A - Prob. 6ADQCh. 3.A - Prob. 7ADQCh. 3.A - Prob. 1ARQCh. 3.A - Prob. 2ARQCh. 3.A - Prob. 3ARQ
Ch. 3.A - Prob. 4ARQCh. 3.A - Prob. 5ARQCh. 3.A - Prob. 6ARQCh. 3.A - Prob. 1APCh. 3.A - Prob. 2APCh. 3.A - Prob. 3APCh. 3.6 - Prob. 1QQCh. 3.6 - Prob. 2QQCh. 3.6 - Prob. 3QQCh. 3.6 - Prob. 4QQCh. 3 - Prob. 1DQCh. 3 - Prob. 2DQCh. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - Prob. 1RQCh. 3 - Prob. 2RQCh. 3 - Prob. 3RQCh. 3 - Prob. 4RQCh. 3 - Prob. 5RQCh. 3 - Prob. 6RQCh. 3 - Prob. 7RQCh. 3 - Prob. 8RQCh. 3 - Prob. 9RQCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3PCh. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7P
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- Firms will react to a shortage (excess demand) by ________ prices. Why will they do this?arrow_forwardan increase in the supply of golf clubs brings a ___ of golf clubs at the original price and a _____ in their price.arrow_forwardDraw this perfectly elastic supply and this price of $ 2. This. What can you say about quantity supplied at any other price?arrow_forward
- If the supply decreases and the demand decreases, a. b. C. d. the equilibrium price and quantity both decreases. the equilibrium price decreases while the equilibrium quantity increases. the equilibrium quantity decreases while the effect on price is ambiguous. the equilibrium price and quantity both increases. A a B b D darrow_forwardA shortage will occur when the quantity demanded is less than quantity supplied.؟ a . True b . Falsearrow_forward27.Increase and decrease in supply is due to ______________________factors keeping the price constant.arrow_forward
- Which of the following causes for an increase in the supply of a product? a. An increase in the rate of tax b. An increase in the cost of production c. An increase in subsidy d. A decrease in the number of sellersarrow_forwardMovement along the demand and supply curves is referred to as "a change in demand and supply," while a shift in the demand and supply curves is referred to as "a change in quantity demanded and supplied." True Falsearrow_forwardWhat is the effect of a price ceiling on the quantity demanded of a product? what is the effect of a price ceiling on the quantity supplied? Why does a price ceiling cause a shortage?arrow_forward
- Identify what happens to equilibrium price and quantity in each of the following cases:a. Demand rises, and supply is constantb. Supply rises and demand is constantc. Decrease in demand and increase in supplyd. Decrease in both demand and supplye. Increase in demand and decrease in supplyarrow_forwardDemonstrate understanding the law of supplyarrow_forwardCould you explain the difference between a suprlus and shortage in terms of supply and demand?arrow_forward
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